March 11, 2005 4:00 AM PST

Yahoo seeks to expand in Google territory

Yahoo is poised to launch an ad network for small Web publishers styled on a similar offering from Google, sources familiar with the plan told CNET News.com, a move that promises to sharpen competition between the search giants.

While Yahoo and Google already go head-to-head for major search advertising partners such as America Online, Google has largely enjoyed a monopoly serving its signature text-only ads to smaller publisher Web sites, including ever-more-popular blogs.

Now Yahoo plans to launch its own advertising option for small publishers, a source familiar with the plan said. Like Google's service, Yahoo's self-serve product will display text ads deemed relevant to the content of specific Web pages. Advertisers pay only when a reader clicks on their ad. Yahoo and publishers will split the fees.

News.context

What's new:
Yahoo is readying an ad network for small Web publishers similar to Google's AdSense.

Bottom line:
Yahoo is busy looking for new revenue sources as it seeks to transform itself into an online media conglomerate and beat Google in the Web search game.

More stories on targeted ads

UBS Warburg this week upgraded Yahoo on expectations that the company will enter this new arena. In a further sign that a launch may be imminent, text ads have recently been spotted on some Yahoo employee blogs.

Dan Boberg, director of business partnerships for Yahoo subsidiary Overture Services, confirmed in an interview last week that Yahoo is interested in the market, although he declined to discuss details. "We're headed in that direction," he said.

Yahoo's push to expand its advertising reach comes as the market for search advertising is taking off, fueling record revenue and profits at the Web portal. At the same time, Yahoo is busy looking for new revenue sources as it seeks to transform itself into an online media conglomerate and beat Google in the Web search game.

Tapping small publishers offers a promising growth path, given Google's earlier efforts in this niche.

In June 2003, Google expanded its ad services for large publishers, dubbed AdSense, adding a self-serve, automated product specifically aimed at small sites. As opposed to search-related ads, which are triggered by keywords entered into its search engine query bar, AdSense ads are targeted to the content of a page and its meaning. For example, a news story about a soccer match might display a sponsored link for soccer gear.

Google does not break out AdSense sales but includes them in a broader category that encompasses all syndicated search

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6 comments

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A quick analysis of the Yahoo! ad program
I've put together a quick analysis of the Yahoo! ad program at <a class="jive-link-external" href="http://www.ericgiguere.com/articles/yahoo-ad-program.html" target="_newWindow">http://www.ericgiguere.com/articles/yahoo-ad-program.html</a> based on the scant details available.
Posted by Eric Giguere (13 comments )
Reply Link Flag
A quick analysis of the Yahoo! ad program
I've put together a quick analysis of the Yahoo! ad program at <a class="jive-link-external" href="http://www.ericgiguere.com/articles/yahoo-ad-program.html" target="_newWindow">http://www.ericgiguere.com/articles/yahoo-ad-program.html</a> based on the scant details available.
Posted by Eric Giguere (13 comments )
Reply Link Flag
Overture/Yahoo not returning my emails/calls
Interestingly, I run marketing for a site that serves roughly 30 million page views a month in the social networking/classifieds space.

However, I can't even get Overture/Yahoo! to return my calls or emails. So, it seems they may not be as interested in publishers as they appear. Hopefully with this announcment they take a more proactive approach in responding to publisher inquiries about "adsense" like programs.

Darian Patchin
Tribe.net
Posted by (2 comments )
Reply Link Flag
Overture/Yahoo not returning my emails/calls
Interestingly, I run marketing for a site that serves roughly 30 million page views a month in the social networking/classifieds space.

However, I can't even get Overture/Yahoo! to return my calls or emails. So, it seems they may not be as interested in publishers as they appear. Hopefully with this announcment they take a more proactive approach in responding to publisher inquiries about "adsense" like programs.

Darian Patchin
Tribe.net
Posted by (2 comments )
Reply Link Flag
Sunil
I think Yahoo wasted too much time on thinking... what the hell it took so long for them to jump into this arena. Google 48% revenue is through AdSense and thats a clear indication of how powerful this new Ad market is.

<a class="jive-link-external" href="http://www.temid.com/palette/2005/03/yahoo-gets-ready-to-kick-some-adsense-butts/" target="_newWindow">http://www.temid.com/palette/2005/03/yahoo-gets-ready-to-kick-some-adsense-butts/</a>
Posted by temid (7 comments )
Reply Link Flag
Sunil
I think Yahoo wasted too much time on thinking... what the hell it took so long for them to jump into this arena. Google 48% revenue is through AdSense and thats a clear indication of how powerful this new Ad market is.

<a class="jive-link-external" href="http://www.temid.com/palette/2005/03/yahoo-gets-ready-to-kick-some-adsense-butts/" target="_newWindow">http://www.temid.com/palette/2005/03/yahoo-gets-ready-to-kick-some-adsense-butts/</a>
Posted by temid (7 comments )
Reply Link Flag
 

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